SEA wins another significant contract The Systems Engineering & Assessment (SEA) subsidiary, part of the Sensors and Effectors segment, has been awarded a 32-month contract to the value of £17.5m for a major defence programme. The contract is with a UK customer to provide a Communications System which further underpins the order book (FY23A £329m). Our view The encouraging contract win underpins our existing forecasts and enhances visibility – no change to Group estimates. The prelims in July signalled FY24 order cover at >90% of consensus revenue (vs. 85% INVe). This is another significant win for SEA (awarded a £26.2m contract in May) and enhances visibility on future revenues; FY24E-26E Group revenue of £187m - £201m and Sensors and Effectors segment revenue of £96.5m - £103.4m. Next catalyst: The DSEI show on 12th-15th September. Valuation The increasing threat of wider global conflict supports defence spending and is driving demand for Cohort’s niche products and services. The Group stands out as a long-term beneficiary with exceptional visibility. Cohort is attractively valued in the shrunken listed defence sector; the shares are trading at a discount on a FY24E P/E of 13.2x and EV/EBITDA of 7.5x compared to the NTM 5-year averages of 14x and 10x.